The Insurance Council of Australia (ICA) reported a $1.94 million operating loss for the year ending Dec. 31, 2024, citing unplanned spending tied to regulatory responses, workforce initiatives, and higher-than-forecast catastrophe response costs.
According to its newly released Annual Report, the ICA absorbed the loss using accumulated earnings from previous years’ surpluses.
The council said the deficit reflected its efforts to support the general insurance sector through increased scrutiny, policy reform, and industry development projects.
Steve Johnston, ICA chair and Suncorp Group CEO, noted that 2024 was marked by economic pressures and ongoing natural hazards.
“In 2024, our industry paid out nearly $50 billion in claims, an average of $192 million every working day, demonstrating the critical role we play in supporting customers when they need it most. Across the past 12 months the cost of living has been front and centre for households, with insurance affordability remaining a top priority for our industry,” he said.
He added that affordability remains a major challenge, particularly as climate risk escalates.
“As an industry that prices risk, we know the most effective way to keep premiums manageable is to reduce risk. This is a long-term strategy and requires close collaboration with governments to identify the most effective ways to meaningfully achieve this,” Johnston said.
The ICA board saw significant turnover in 2024. Nick Hawkins, IAG managing director and CEO, concluded his term as president in December. Departing board members also included executives from Lloyd’s Australia, Hollard Holdings, and Chubb Insurance.
The ICA welcomed new members throughout the year:
Chief executive officer Andrew Hall said the year began with recovery efforts from severe weather incidents – including ex-Tropical Cyclone Jasper and summer storms.
Although 2024 had only two insurance catastrophes declared – the Valentine’s Day and April storms – claim volumes remained high due to lingering effects from earlier disasters.
“Despite fewer major events, the industry’s response to past catastrophes remained under the spotlight. The Parliamentary Inquiry into insurers’ responses to 2022 major floods claims and the Independent Review of the General Insurance Code of Practice reinforced the need for continuous improvement in claims handling and customer outcomes,” Hall said.
He pointed to the implementation of recommendations from the 2022 Flood Inquiry, the Independent Review of the Code of Practice, and a separate Deloitte report, all aimed at improving service standards, claims efficiency, and support for vulnerable customers.
The ICA launched or advanced multiple strategic projects in 2024, including a disaster response charter, an electric vehicle safety partnership with Fire and Rescue NSW, and a talent development roadmap designed to attract new professionals to the sector.
Other activities included a US delegation study tour, stakeholder roundtables with planning and banking associations, and ongoing engagement with Indigenous communities and federal policymakers.
Regulatory advocacy also remained a key focus. The ICA supported efforts to remove insurance taxes such as the Emergency Services Levy in NSW, recommended amendments to towing laws in WA, and pushed for building code reforms to prioritise resilience.
Looking ahead, the council said its key priorities include closing the protection gap in areas like home insurance, strengthening member engagement, and increasing trust through transparency and customer-focused practices.
The ICA also committed to sustainable practices, both internally and across the broader industry, with a particular focus on climate risk adaptation and disaster readiness. It will continue working with stakeholders to progress the proposed $30.15 billion Flood Defence Fund.
